Singtel, KepCorp selling stakes in JV to Telechoice unit

MAINBOARD-LISTED Singtel Z74 and a unit of the subsidiary of Keppel Corporation BN4 will each divest their respective 50 per cent stakes in Radiance Communications to a subsidiary of Telechoice International T41 , another mainboard-listed player.

Each seller will pocket S$625,000 from the sale.

Before the divestment, Radiance Communications will distribute dividends and return capital of about S$2 million each to Singtel and Keppel Communications, the KepCorp unit involved in the sale.

The total proceeds will hence be about S$2.6 million for each seller. However, the divestment that will end Radiance Communications' status as an associate is not expected to have a material impact on the net tangible assets or earnings per share of KepCorp, it stated in its regulatory filing on Tuesday (Apr 12).

Incorporated in 1997, Radiance is an info-communications system integrator and service provider in unified communications and contact centre solutions for the government sector and the general enterprise market segment in Singapore and Malaysia.

The divestment to NxGen Communications was arrived at on a "willing buyer, willing seller" basis, taking into account Radiance Communications' financial performance and the net asset value of the stakes of approximately S$3.7 million as at Mar 31.

Temasek Holdings, as KepCorp noted in the bourse filing, had a deemed interest of 50.5 per cent in Telechoice International as at Mar 8. Temasek also held an interest of 52.2 per cent in Singtel as at Jun 8, 2021.

Singtel shares were lower by 1.14 per cent at S$2.61. Those of Telechoice International were flat at S$0.14, and KepCorp was down 1.21 per cent to S$6.55 on Tuesday before this announcement was made post-trading hours.